Monetary policy and the Federal Reserve
Fed policy is a critical component of a broad policy agenda to sustain economic growth, create more jobs, and raise stagnating wages. By keeping the target for its benchmark interest at zero since 2008, the central bank has helped the nation recover from the darkest days of the Great Recession. But despite improvement in the job market, unemployment is still unacceptably high for many workers, including Black and Hispanic workers. By keeping interest rates where they are, the Fed would support a still-struggling economy and provide a better foundation for tackling income inequality and wage stagnation. Widespread wage growth will not occur over the coming years if the Federal Reserve prematurely slows the recovery in the name of fighting prospective inflation. Inflation isnot a threat. Recent EPI research shows why.
By Content:
By author:
By Type:
The macroeconomics of the Trump administration:Chaotic and harmful policies will make the United States poorer—either rapidly or gradually
Policy choices did not cause recent years’ inflation—but did deliver strong wage growth
The post-pandemic recovery is an economic policy success story:Policymakers took the best way through a rocky path
Why the Fed should cut interest rates this week
The labor market remains strong yet the Fed should cut rates in September
Profits and price inflation are indeed linked
Slowing job growth makes clear that the Fed has waited too long to cut interest rates
Prices have fallen in key sectors since inflation peaked in 2022
Tight labor markets are essential to reducing racial disparities and within the purview of the Fed’s dual mandate
Don’t wait on wage growth—the Fed should cut rates at this week’s meeting
A retrospective look at inflation:Which predictions were wrong or right, and what remains unclear?
Lessons from the inflation of 2021–202(?)
Even with today’s slowdown, profit growth remains a big driver of inflation in recent years:Corporate profits have contributed to more than a third of price growth
Recent banking failures add another reason to halt interest rate hikes
What to watch on jobs day:Upward revisions in employment expected after record two-year job growth
The Fed should stand pat on further interest rate hikes at this week’s meeting:Inflation is easing even as the labor market remains strong
Inflation should not change how policymakers respond to recession
Inflation is easing:Fed should slow rate hikes
The Fed and a smooth macroeconomic transition to a cleaner U.S. economy
Recent data indicate that a “soft landing” is still in reach—the Fed should try to secure it:Ignoring disinflation signs heightens risk of recession
Inflation, minimum wages, and profits:Protecting low-wage workers from inflation means raising the minimum wage
August CPI data will likely show a second straight month of overall price declines:New interest rate hikes may be harmful
Will secular stagnation return? The stakes for current economic debates and fiscal policy
August 4, 2022ByAsha Banerjee andJosh BivensNot a recession—yet:The Fed’s overly aggressive interest rate hikes increase risk of recession
Inflation is no excuse for inaction on needed tax reforms and investments
A recession would be worse than today’s inflation
June inflation data show continued growth in overall CPI, but don’t capture recent price declines in food and energy
Jobs report:Moderating wage growth means the Fed doesn’t need to raise interest rates further to contain inflation
Against panic:The Fed should not be given permission to cause a recession in the name of inflation control
Inequality’s drag on aggregate demand:The macroeconomic and fiscal effects of rising income shares of the rich